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Acct 504 Mid Term

In: Business and Management

Submitted By milo1er
Words 1077
Pages 5
Question 1. Question :
(TCOs A, B, and C) Which of the following statements concerning users of accounting information is incorrect? Student Answer:
The marketing vice president is considered an internal user. Present and prospective creditors are considered external users. *Regulatory authorities, such as the SEC, are considered internal users. The IRS is considered an external user. Instructor Explanation:
Chapter 1 Points Received:
3 of 3

Comments: Question 2. Question :
(TCO C) Collecting cash from customers would be an example of which type of activity? Student Answer:

Investing Financing Non-cash financing activity Instructor Explanation:
Chapter 1 Question 3. Question :
(TCO A) Assets include Student Answer: loans obtained by the company. stockholders’ investment in the business. dividends paid to shareholders. *supplies and prepaid expenses. Instructor Explanation:
Chapter 1 Points Received:
3 of 3 Comments: Question 4. Question :
(TCO A) Which of the following should not be classified as a current liability? Student Answer: Accounts Payable * A note payable due in 15 months Income Tax Payable Unearned Revenue Instructor Explanation:
Chapter 3 Points Received:
3 of 3 Comments: Question 5. Question :
(TCO B) For 2012, LBJ Corporation reported net income of $40,000; net sales $1,400,000; and weighted average shares outstanding of 10,000. There were no preferred stock dividends. What was the 2012 earnings per share?
Student Answer:

$2.00 $14.00 $140.00 Instructor Explanation:
($40,000 minus 0) divided by 10,000 shares = $4.00, Chapter 11 Points Received:
3 of 3 Comments: Question 6. Question :
(TCO D) Which of the following describes the normal balance and classification of the Unearned Revenue account? Student…...

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